Economics of the Australian Government
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Economics of the Australian Government
description
Economics of the Australian Government. Australian Budget 2014-2015. The Australian Government is much like a business: They have money coming in called: INCOME & They have money going out called: EXPENSES. Surplus or Deficit. - PowerPoint PPT Presentation
Transcript of Economics of the Australian Government
Economics of the Australian
Government
Australian Budget 2014-2015
The Australian Government is much like a business:
They have money coming in called:
INCOME&
They have money going out called:
EXPENSES
Surplus or Deficit
Governments are obliged to add up their income for the tax year and deduct their expenses from this figure.
The end result will be either a:1. Surplus (in the positive) 2. Deficit (in the negative)
Surplus or Deficit
Australia’s tax year begins on 1st July 2014 and concludes at 30 June 2015.
Income for year $1,000Less:
Expenses for year $600=
Surplus for year $400
Surplus or Deficit
Income for year $600Less:
Expenses for year $1000=
Deficit for year $400
Income
How much do you think the Australian Government earns per
year?
Answer
Income$266,200,000,000
Income
What is the main way the Australian Government earns it’s
income?
Answer:
Individuals Income Tax = $183,000,000,000
Company Tax = $75,300,000,000
Superannuation Tax = $7,900,000,000
Total of these three areas of income
$266,200,000,000
Individ
ual Tax
Company Tax
Superranuatio
n Tax$0.00
$20,000,000,000.00$40,000,000,000.00$60,000,000,000.00$80,000,000,000.00
$100,000,000,000.00$120,000,000,000.00$140,000,000,000.00$160,000,000,000.00$180,000,000,000.00$200,000,000,000.00
Government Income
Expenses
How much do the Australian Government spend?
Answer:
Expenses$442,029,000,000
Expenses
So what does the Australian Government spend this money
on?
Answer:
Social servicing $130,320,000,000
Treasury $120,980,000,000
Defense $59,053,000,000
Health $48,413,000,000
Education $33,443,000,000
Social S
ervici
ng
Treasu
ry
Defense
Health
Educatio
n$0.00
$20,000,000,000.00
$40,000,000,000.00
$60,000,000,000.00
$80,000,000,000.00
$100,000,000,000.00
$120,000,000,000.00
$140,000,000,000.00
Government expenditure
Surplus or Deficit
Do you think the Government will make a surplus or deficit in
2014?
Answer:
Income $412,229,000Less:
Expenses $442,029,000
Deficit $29,800,000,000
Individual Tax Company Tax Superranuation Tax
Social Servicing Treasury Defense Health Education0
20,000,000,000
40,000,000,000
60,000,000,000
80,000,000,000
100,000,000,000
120,000,000,000
140,000,000,000
160,000,000,000
180,000,000,000
200,000,000,000
Income and Expenses
Job losses
What are some reasons mass jobs could be lost?
Reasons for job losses
Factory closuresUnable to compete with overseas
No need for productBadly managed
Reasons for job losses
Natural DisastersFloodingStorms
Extreme heat or coldCyclones
What do you think will happen if jobs are lost?
Answer:
1. Less income tax being paid to the government2. More social service payments being made by
the government3. Less spending on goods and services in
Australia4. Higher prices for goods and services
5. More crime
